The determination of the Group’s strategy is based on many factors, beginning with an evaluation of the external environment. In particular, the following analyses are performed:
- an analysis of macroeconomic, energy and climate scenarios: assessments and projections at the global and local levels to identify the main macroeconomic, energy and climate drivers in the short, medium and long term;
- competitive landscape analysis: a comparison of the economic, financial, industrial, ESG (Environmental, Social & Governance) performance of companies in the utilities sector and other industries (for example, automotive, tech, oil & gas) in order to monitor, shape and support the Group’s competitive advantage and leadership position;
- industrial vision: an overview of the macro-trends affecting the company’s business, with an assessment of the potential impacts on the Group’s business based on a broad internal and external collaborative effort to identify actions to prevent, adapt to and manage disruption and changes in our business.
The analysis of what is happening and what could happen in the external environment underpins the phase of designing our strategic options and consequent positioning, which is structured into the following main activities:
- long-term positioning: evaluation of strategic options over a time horizon that extends beyond that used in industrial planning, with (i) the definition and the quantitative and qualitative development of alternative macroeconomic, energy and climate scenarios against which overall strategy can be assessed, and (ii) analysis based on stress testing for various factors, including the evolution of the industrial sector, technology, competitive structure and policies;
- strategic dialogue: a rolling process where key strategic issues are discussed separately from the typical strategic planning process, which in turn is enriched by the continuous feedback of the strategic dialogue. It is part of a strategic design phase where communication between executives in the different businesses produces valuable insight for the development of new strategic options, underscoring the need for cultural or organizational change and synergies between businesses;
- assessment of ESG factors and results of materiality analysis: Enel conducts materiality analysis using a well accepted methodology, taking account of the main standards in this area (Global Reporting Initiative - GRI and the Sustainability Accounting Standards Board - SASB) with the aim of identifying the most important issues for both the Company and for stakeholders (material issues) and to verify their “alignment” or “misalignment” with external expectations and internal importance.
The strategy of the Enel Group has proven its ability to create sustainable long-term value, integrating the themes of sustainability and close attention to climate change issues while simultaneously ensuring a steady increase in profitability. The Group is among the leaders guiding the energy transition through the decarbonization of electricity generation and the electrification of energy consumption, which represent opportunities both to increase value creation and to contribute positively to more rapid achievement of the Sustainable Development Goals set by the United National (SDGs) in the 2030 Agenda.